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Abstract

Labor in Sharia Law: The Sharia Law has laid down general rules, principles and regulating controls or restraints on economic activity and its revenue. Actually any activity in the individual’s and society's interest is deemed legal in Sharia Law if it is in accordance with these rules, which prohibit usury and any harmful produce, warn against gambling, cornering, cheating or any action leading to extortion or forcible exaction. Legal economic activity, according to Islam, is any mental, physical, industrial or any other action, which is conducive to development and the promotion of the quality of life. Islamic textual provisions set very general rules for the righteous society, leaving it to the successive generations to supply the details that suit their changing situations without imposing any other restrictions except that of general public interest. Factors of Production and their Revenues in non-Islamic Economies: According to economists there are four factors of production. 1. Land or natural resources. 2. Labor. 3. Capital. 4. Enterprise. According to socialist economists, however, there is only one factor of production, which is Labor. The revenues, accruing to the four above-mentioned factors of production are called rent wages, interest and profit consecutively. In socialist economy the revenue of production is the salary or wages. Factors of Production in Islam: Islam accommodates the four factors of production, but they neither rank equally as in capitalistic thought, nor are they restricted to one factor as in socialistic though. In Islamic thought, labor, for instance, is given supremacy as is clear in the following cases. 1. in exploitation of natural resources: According to Islam, labor, not capital, is entitled to the ownership of exploited natural resources and their revenues. It is incumbent, however, on the owner, the laborer, to recompense the other factors. 2. In case the product belonged to a previous owner: In this case the owner will be entitled to the product and the other factors will be recompensed for improving or adding to the original product. 3. Remuneration for labor : Labor is the only factor which is entitled to two ways of remuneration, namely, partnership or wages. Capital, if in kind, and land (l) are entitled to one way of remuneration only, namely payment of price. Capital, if in cash, is entitled to a share in the profit only.

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